The FTSE saw a nice bounce yesterday following a fall back down to the ascending trendline. We have seen the FTSE pull back heavily overnight and this morning, with the more recent price action forming a new lower high, and the price has now closed below the short-term support of 6428.

Given the close below 6428, I would expect further losses and do see this market trading lower throughout the day. As such, I am looking for a follow through of this move lower, as long as it doesn’t move back above 6436. The selloff is likely to look towards the 6384 and 6365 support levels.

The DAX has seen significantly less downside compared with the other major indices, with the price drifting gently lower. This is a pretty bullish sign given the strong move higher leading into this release. The near-term support level in play is the 38.2% Fibonacci retracement and Monday resistance of 10,856. Ultimately, this market looks bullish unless the price moves back below 10,777.

The Dow looks a lot like the DAX, with a very minimal selloff in response to the Fed statement yesterday. Coming off the back of a strong move higher yesterday this looks bullish, and if a hawkish Fed cannot drive a major selloff, it makes you think that actually the underlying sentiment is bullish.

I expect the Dow to drive higher once more in the near future, but will await a clear signal that it has happened. The move that signals a continuation of the high would be a break through 17,786. However, should we create a swing high during this current drift lower, a break back above there could also be notable. Support levels to watch on the downside are 17,868 and 17,549. Key resistance levels to watch in the near term are 17,786 and 17,800.